With tickets free and the show to be held in the 1,500-seat Detroit theater, what is free and what is scarce? Explain your answer
What will be an ideal response?
The seats in the concert are scarce—there are only a limited number (1,500) available. Also scarce is the time the enthusiastic fans spent in line to acquire the tickets. The publicity that Eminem received is not free to him because he paid for the theater, hauling equipment to the theater, and so on.
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Refer to Figure 17-3. In Panel A, at high wages (segment iii)
A) the price of leisure is rising relative to the price of labor. B) laborers work more as wages increase. C) the price of leisure is falling relative to the price of labor. D) labor suppliers take more leisure as wages increase.
Ceteris paribus means
A. "other things being constant." B. "all variables are independent." C. "some theories are not rational." D. "some assumptions are unrealistic."
As a result of firms leaving the perfectly competitive frozen yogurt market in the early 2000s, the market
A) supply curve shifted leftward. B) supply curve did not change. C) demand curve shifted rightward. D) supply curve shifted rightward. E) demand curve shifted leftward.
In contrast to the CAPM, the APT assumes that there can be several sources of ________ that cannot be eliminated through diversification
A) nonsystematic risk B) systematic risk C) credit risk D) arbitrary risk